oil country Management discussions

a) Structure and Developments, Opportunities and Threats, Performance, Outlook, Risks and Concerns: The Company had undergone Corporate Insolvency Resolution Process (CIRP) during the period 28^th January 2020 to 20^th September 2022, and Management was restored to the Board of Directors vide Honble NCLT Order No. IA No.975/2022 dated 21^st September 2022. There have been no operations during the CIRP period. The Company carried out thorough checkup and maintenance of the Plant and Machinery as well as cleaning up operations of the factory premises, and make the plant fully operational.

The Companys American Petroleum Institute (API) Accreditation, remained under ‘IN ACTIVE status, due to no operations. API Audit was scheduled from 25^th January 2023 to 27^th January 2023. The Company has successfully completed the API Audit and restored its status to

‘ACTIVE. The validity of API Certificate API 5DP, API 5CT and Spec.7-1 have been extended upto December 15, 2025.

The Government of India under the ‘Make in India Policy decided that Government / Public Sector Agencies will procure the requirement only from indigenous sources through Government-e-Marketplace (GeM) Portal for which all indigenous manufacturers have to Register. The Company has Registered with GeM for all the products manufactured / processed. The Company is now bidding both in the Domestic as well as Export Market.

During the current Financial Year, the Company has successfully Bid for Job Work Orders valued around Rs.20.00 Crores which will be executed upon receipt of Material from the customer

. b) Internal Control Systems and their Adequacy :

Management has put in place effective Internal Control Systems to provide reasonable assurance for: • Safeguarding Assets and their usage.

• Maintenance of Proper Accounting Records and

• Adequacy and Reliability of the information used for carrying on Business Operations.

Key elements of the Internal Control Systems are as follows:

(i) Existence of Authority Manuals and periodical updating of the same for all Functions.

(ii) Existence of clearly defined organizational structure and authority.

(iii) Existence of corporate policies for Financial Reporting and Accounting.

(iv) Existence of Management information system updated from time to time as may be required.

(v) Existence of Annual Budgets and Long Term Business Plans. (vi) Existence of Internal Audit System.

(vii) Periodical review of opportunities and risk factors depending on the Global / Domestic Scenario and to undertake measures as may be necessary.

The Company has appointed an Independent Auditor to ensure compliance and effectiveness of the Internal Control Systems in place.

The Audit Committee is regularly reviewing the Internal Audit Reports for the auditing carried out in all the key areas of the operations. Additionally the Audit Committee approves all the audit plans and reports for significant issues raised by the Internal and External Auditors. Regular reports on the business development, future plans and projections are given to the Board of Directors. Internal Audit Reports are regularly circulated for perusal of Senior Management for appropriate action as required.

Normal foreseeable risks of the Companys assets are adequately covered by comprehensive insurance. Risk assessments, inspections and safety audits are carried out periodically. c) Financial and Operational Performance :

The Highlights of Financial Operational Performance are given below : Rs. In Lakhs

S.No.	Particulars	2022-23	2021-22
1	Sales / income from operations	27.49	-
2	Other Income	14,186.54	10.33
3	Sub-total	14,214.03	10.33
4	Total Expenditure (Before interest)	4423.16	2676.29
5	Profit/(Loss) Before Interest, Tax and Exceptional Items	11,660.75	(2,665.96)
6	Operating Margin %	-	-
7	Profit/(Loss) After Tax and Exceptional Items	10,467.50	(5,132.27)
8	Return on Average Capital Employed % (Before Interest and Tax)	-	-
9	No. Of Months Receivables (Receivables / Sales X 12)	-	-
10	Current Ratio (Current Assets / Current Liabilities)	1.11	0.52

d) Human Resources Development and Industrial Relations :

The Company has constituted an Internal Complaint Committee (ICC) in pursuant to the provisions of Companies Act, 2013 for prevention, prohibition and redressal of complaints / grievances on the sexual harassment of women at work places, Industrial Relations. e) Cautionary Statement :

Statements in the Management Discussion and Analysis and Directors Report describing the Companys strengths, strategies, projections and estimates, are forward-looking statements and progressive within the meaning of applicable laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government Policies and other incidental factors. Readers are cautioned not to place undue reliance on the forward looking statements.

	For and on behalf of the Board of Directors
Place : Hyderabad
Date: 24-May-2023	K. Suryanarayana	Sridhar Kamineni
	Chairman	Managing Director
	DIN: 00078950	DIN: 00078815